Correlation Between Mainstay Map and Dreyfusstandish Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Map and Dreyfusstandish Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mainstay Map and Dreyfusstandish Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Map Equity and Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on Mainstay Map and Dreyfusstandish Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mainstay Map with a short position of Dreyfusstandish Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Map and Dreyfusstandish Global.
Diversification Opportunities for Mainstay Map and Dreyfusstandish Global
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Dreyfusstandish is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Map Equity and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global and Mainstay Map is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mainstay Map Equity are associated (or correlated) with Dreyfusstandish Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusstandish Global has no effect on the direction of Mainstay Map i.e., Mainstay Map and Dreyfusstandish Global go up and down completely randomly.
Pair Corralation between Mainstay Map and Dreyfusstandish Global
Assuming the 90 days horizon Mainstay Map Equity is expected to generate 2.99 times more return on investment than Dreyfusstandish Global. However, Mainstay Map is 2.99 times more volatile than Dreyfusstandish Global Fixed. It trades about 0.05 of its potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about 0.08 per unit of risk. If you would invest 1,923 in Mainstay Map Equity on September 4, 2024 and sell it today you would earn a total of 336.00 from holding Mainstay Map Equity or generate 17.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mainstay Map Equity vs. Dreyfusstandish Global Fixed
Performance |
| Timeline |
| Mainstay Map Equity |
| Dreyfusstandish Global |
Mainstay Map and Dreyfusstandish Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Map and Dreyfusstandish Global
The main advantage of trading using opposite Mainstay Map and Dreyfusstandish Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Map position performs unexpectedly, Dreyfusstandish Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dreyfusstandish Global will offset losses from the drop in Dreyfusstandish Global's long position.| Mainstay Map vs. Ab Small Cap | Mainstay Map vs. The Hartford Small | Mainstay Map vs. Us Small Cap | Mainstay Map vs. Oklahoma College Savings |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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